Re: Re[2]: Pricing Strategies, was directories

Richard Layman (rlayman@cap.gwu.edu)
Fri, 9 Dec 1994 19:18:19 -0800

Not trying to pick apart Joe's post, because it was great, but just want
to make the point that you can't compare retail to catalog operators in
this instance (at least as it related to my particular posts). Yes, it's
cheaper to get 10K visits/day via the web over a
physical retail site, but I was talking about catalogers, who generally
don't have retail sites to begin with (except maybe an outlet store or two).

To be totally analogous, maybe I would compare the costs of developing,
printing, and mailing a catalog to the cost of developing one digital
catalog and putting it on the Web. On a where to develop new business
plan, comparing the launch of a printed catalog to a Web catalog is
analagous. I couldn't agree more that the ability to save on printing and
postage is considerable.

BTW, Joe, if you're willing to share some #s, I'd be interested in having
Hot, Hot, Hot as a case study in our forthcoming series on the Internet
and business.

Not going to respond to Paul's post separately, but a good one. In
Europe, UPS and FedEx are much more involved in inventory management,
order picking, etc., for some of their customers. It wouldn't be a
stretch to expand those activities along the lines Paul mentioned. (The
US Postal Service is involved in TimeWarner's interactive test in Orlando,
maybe they'll do as you suggest. Of course, I doubt it.)

I was hoping that my posts would get some good discussion going, and they
have. Thanks all for your insights. I'm eager for more.

Richard Layman
Computer Television Network
rlayman@cap.gwu.edu (which will be down 12/14-15
rllayman@netcom.com